Solution-Compute the ratio of liabilities to stockholders

Compute the ratio of liabilities to stockholders equity

Assignment Help Managerial Accounting

Reference no: EM132748264

Problem - Analyze the Home Depot for three years

The Home Depot, Inc. (HD), is the world's largest home improvement retailer and one of the largest retailers in the United States based on sales volume. Home Depot operates over 2,200 stores that sell a wide assortment of building, home improvement, and lawn and garden items.

Home Depot recently reported the following end-of-year balance sheet data (in millions):

	Year 3	Year 2	Year 1
Total assets	$42,549	$39,946	$40,518
Total liabilities	36,233	30,624	27,996
Total stockholders' equity	6,316	9,322	12,522

Required -

a. Compute the ratio of liabilities to stockholders' equity for all three years. Round to two decimal places.

b. What conclusions regarding the margin of protection to creditors can you draw from the trend in this ratio for the three years?

Reference no: EM132748264

Questions Cloud

Organ Leader And Decision Making : Some organizational factors increase a project's likelihood of success. Identify these "facilitators" for the Green project.

Determine the cash receipts during July : During July, cash payments totaled $115,860, and the July 31 balance was $29,600. Determine the cash receipts during July

Major area of focus for information governance efforts : Major area of focus for information governance (IG) efforts, and has become the most common business software application.

Discussed several ddifferent models and archetypes : We discussed several ddifferent models and archetypes. Identify the IT Governance archtetype and provide an example.

Compute the ratio of liabilities to stockholders equity : Analyze the Home Depot for three years - Compute the ratio of liabilities to stockholders' equity for all three years. Round to two decimal places

Discuss why important in software security : Specify penetration testing objectives in the system, checking a system for vulnerabilities, and performing a review of the code.

What change leadership theories : What change leadership theories would be most helpful and why?

Special risk management issues with blue wood chocolates : Chapter 18 presented special risk management issues with Blue Wood Chocolates, and chapter 19 presented various financial risks at Kilgore Custom Milling.

Explain the differences between bi and data science : What are the three characteristics of Big Data, Explain the differences between BI and Data Science. Define Support and Confidence?

User Account

All Pages

Compute the ratio of liabilities to stockholders equity

Reference no: EM132748264

Reference no: EM132748264

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT